Use Cases

Sovereign, Treasury-backed collateral for margin, financing and settlement.

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Institutional flows run on sovereign collateral

USDM1 is a sovereign-issued, USD-denominated, Treasury-backed financial instrument1 designed to:

  • Settle 24/7 across blockchain infrastructure
  • Reduce margin exposures, benefitting from robust U.S. close-out netting protections
  • Improve trading capacity through capital-efficient balance sheet usage
  • Generate yield, paying a sovereign coupon
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A secured sovereign claim with Treasury look-through for:

Margin

Post sovereign, Treasury-backed1 collateral in margin workflows with legal enforceability and netting compatibility. Reduce exposure and improve capital efficiency in institutional derivatives.

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Collateral Optimization

Upgrade corporate exposures to yield-bearing sovereign collateral designed for netting, substitution and reuse. Optimize capital efficiency without leaving qualified custody.

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Repo

Deploy USDM1 in repo transactions as a natively issued, Treasury-collateralized1 sovereign instrument designed for title transfer repo, substitution and reuse in institutional frameworks.

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Financing

Enable secured funding using sovereign collateral designed for balance sheet efficiency and institutional financing workflows.

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Treasury Operations

Hold and move USD-denominated sovereign collateral with continuous yield accrual. Streamline treasury operations with institutional-grade safeguards and programmable, 24/7 transfer and settlement.

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Settlement

Settle transactions with a sovereign financial instrument. Move value, post margin and complete transactions in near real-time, reducing counterparty and settlement risk.

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Collateral Mobility

Move sovereign, Treasury-backed1 collateral across counterparties, venues, and custody environments. Enable efficient substitution, transfer, and reuse while maintaining control and continuous yield.

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Trading & Liquidity

Trade with a sovereign, Treasury-backed1 financial instrument designed for institutional markets. Optimize collateral deployment and capital efficiency across venues.

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Structured Products

Build structured products using a sovereign, Treasury-collateralized1 instrument designed for flexibility and control. Incorporate netting, financing, and yield within established legal and market frameworks.

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Margin

Stablecoins introduce corporate credit exposure and are not typically eligible for netting. USDM1 enables margin to function as productive, yield-bearing capital.

Horizontal rounded bars anchored at the top-left corner, progressively decreasing in length from top to bottom, creating a stepped cascade.Horizontal rounded bars anchored at the top-left corner, progressively decreasing in length from top to bottom, creating a stepped cascade.

Applications

USDM1 can be used as initial and variation margin in bilateral derivatives, financing transactions, and as collateral for OTC and structured trades.

Impact

  • Reduces initial margin through netting eligibility
  • Maintains yield when posted
  • Increases capacity per balance sheet dollar
  • Improves structured trading economics

Collateral Optimization

Stablecoins are not always recognized as high-quality collateral. USDM1 upgrades collateral quality to a sovereign, Treasury-backed1 exposure.

Four vertical columns of stacked rounded squares, progressively increasing in size from left to right while decreasing in row count, resembling a stepped data structure.Four vertical columns of stacked rounded squares, progressively increasing in size from left to right while decreasing in row count, resembling a stepped data structure.

Applications

USDM1 supports margin and financing optimization through collateral substitution across portfolios.

Impact

  • Replaces issuer credit risk with dual-recourse sovereign collateral, including Treasury look-through
  • Enables netting eligibility
  • Pays a sovereign coupon
  • Improves capital efficiency and balance sheet usage

Repo

Digital assets can raise complicated questions of title transfer, re-use, and commercial law rights. USDM1 is structured for repo eligibility under New York law and is designed to function similarly to Treasury collateral in financing workflows.

Stacked horizontal bars with semicircular notches cut along a central vertical axis, creating an interlocking comb-like pattern with tonal variation.Stacked horizontal bars with semicircular notches cut along a central vertical axis, creating an interlocking comb-like pattern with tonal variation.

Applications

USDM1 can be integrated into repo workflows for secured borrowing, collateral reuse and transformation. It is structured to support title transfer repo and substitution within institutional financing frameworks.

Impact

  • Funds positions without full capital deployment
  • Reduces capital usage to repo haircuts vs full notional
  • Increases balance sheet velocity
  • Retains yield while financed

Financing

Stablecoins can consume balance sheet capacity without providing financing efficiency. USDM1 enables capital-efficient secured funding under industry standard documentation.

Repeating grid of diamond-shaped cells arranged in horizontal rows, each with directional gradient shading that creates a three-dimensional lattice or honeycomb-like depth effect.Repeating grid of diamond-shaped cells arranged in horizontal rows, each with directional gradient shading that creates a three-dimensional lattice or honeycomb-like depth effect.

Applications

USDM1 can be used to finance trading inventory, support leveraged strategies, and fund derivatives and structured positions.

Impact

  • Enables capital efficient leverage
  • Improves return on equity and increases balance sheet velocity
  • Frees capital for redeployment

Treasury Operations

Stablecoins can introduce accounting complexity and corporate issuer risk. USDM1 provides yield-bearing USD exposure as a sovereign financial instrument.

Dense grid of rounded rectangles with alternating gradient fills, creating a tiled mosaic with subtle tonal variation across rows and columns.Dense grid of rounded rectangles with alternating gradient fills, creating a tiled mosaic with subtle tonal variation across rows and columns.

Applications

USDM1 can be used as collateral for financing or hedging, and as a programmable treasury instrument for liquidity management.

Impact

  • Aligns with institutional accounting frameworks
  • Functions as collateral and a financing asset
  • Earns yield when pledged or financed
  • Works across the balance sheet as productive capital

Settlement

Stablecoins are corporate liabilities and are not typically nettable as collateral. USDM1 supports settlement within institutional netting and collateral frameworks and generates continuous yield.

Two fans of radiating lines converging at a central point, forming a bowtie or pinch shape with gradient opacity at the tips.Two fans of radiating lines converging at a central point, forming a bowtie or pinch shape with gradient opacity at the tips.

Applications

USDM1 can be used for settlement of OTC trades and collateral transfers. It can also be integrated into post-trade infrastructure.

Impact

  • Enables atomic or near-instant settlement
  • Reduces intraday exposure and generates yield
  • Minimizes leverage ratio inflation from settlement risk
  • Combines settlement asset and collateral in one instrument

Collateral Mobility

Stablecoins move easily but do not always meaningfully reduce exposures. USDM1 enables real-time collateral mobility within netting frameworks.

Staggered horizontal rounded bars of varying lengths arranged diagonally, with gradient shading from opaque to translucent across each bar.Staggered horizontal rounded bars of varying lengths arranged diagonally, with gradient shading from opaque to translucent across each bar.

Applications

USDM1 can be used for 24/7 collateral transfers, real-time pledge and release, and programmable movement across counterparties. It enables efficient substitution and reuse within institutional collateral frameworks.

Impact

  • Accelerates collateral cycles
  • Reduces liquidity buffers
  • Improves capital efficiency through faster deployment

Trading & Liquidity

Stablecoins fragment workflows across trading, funding and settlement. USDM1 unifies them into a single, nettable, yield-bearing instrument.

Horizontally centered lines of varying widths and lengths stacked vertically, with gradient shading creating a barrel or cylindrical illusion.Horizontally centered lines of varying widths and lengths stacked vertically, with gradient shading creating a barrel or cylindrical illusion.

Applications

USDM1 can be used in basis trades, cash-and-carry strategies and high-frequency trading workflows.

Impact

  • Reduces operational friction
  • Improves inventory and liquidity management

Structured Products

Stablecoins typically do not net across positions or reduce initial margin requirements. USDM1 is structured to sit within enforceable netting sets under NY law, supporting reduced exposure in derivatives portfolios.

Modular composition of rectangles in varied sizes arranged in an asymmetric grid, each filled with a directional gradient, resembling an abstract architectural layout.Modular composition of rectangles in varied sizes arranged in an asymmetric grid, each filled with a directional gradient, resembling an abstract architectural layout.

Applications

USDM1 can be used across derivatives books and structured notes.

Impact

  • Reduces IM and capital charges
  • Enables netting across positions
  • Supports financeable structured product books
  • Converts margin into yield bearing collateral

Designed for institutions that move global markets

USDM1 unifies collateral, funding and settlement into a secured, USD-denominated sovereign financial instrument - reducing gross exposures and unlocking balance sheet capacity.